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Dec 31, 2022
Workhorse Q4 2022 Earnings Report
Workhorse's financial results for Q4 2022 were reported, showing increased sales and reduced cost of sales compared to the same period last year, alongside a net loss and ongoing progress in product development and strategic initiatives.
Key Takeaways
Workhorse Group reported Q4 2022 sales of $3.4 million, a significant increase from the previous year's $(2.0) million. The company's cost of sales decreased to $21.2 million from $99.9 million year-over-year. Despite these improvements, Workhorse reported a net loss of $38.7 million for the quarter. The company is focused on ramping up production and deliveries of its W4 CC, W750, and W56 product lines.
Sales increased to $3.4 million, compared to $(2.0) million in the same period last year, driven by increased W4 CC vehicle sales.
Cost of sales decreased to $21.2 million from $99.9 million year-over-year, due to non-cash charges related to the discontinued C1000 program.
Net loss was $38.7 million, a significant improvement compared to the $156.1 million loss in the same period last year.
The company is on track to ramp up production and deliveries across its W4 CC, W750 and W56 products in 2023.
Workhorse
Workhorse
Forward Guidance
Workhorse anticipates significant revenue growth in 2023, with expected revenue in the range of $75 million to $125 million.
Positive Outlook
- Focus on manufacturing and operational excellence to support increased production.
- Strategic plan to enable Workhorse to achieve its goals.
- Expected ramp-up in sales, production, and deliveries of commercial vehicles and drones.
- Anticipated momentum from exiting 2022 to prepare for expanded operations in 2023.
- Confidence in having necessary cash and access to capital to meet objectives.
Challenges Ahead
- No specific negative guidance was provided in the earnings report.
- Risks associated with supply chain disruptions, including constraints on steel, semiconductors and other material inputs and resulting cost increases.
- Risks associated with Workhorse's ability to develop and manufacture its new product portfolio, including the W4 CC, W750, W56 and WNext platforms.
- Risks associated with Workhorse's ability to attract and retain customers for its existing and new products.
- Risks associated with obtaining orders and executing upon such orders.